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Rising Demand in China, Other Asian Countries May Push Bitcoin to $5000 by Aug. 30

There are about 15 more days left in the month of August 2017 and Bitcoin price seems to continue recovering from the stunted growth it has seen since the scaling issue heated up earlier this year.

After the split of Bitcoin Cash BCH and the issue of the uncertainty – and its debate traced back to 2010 – surrounding what is to come if it happens has been put to rest, the legacy Bitcoin BTC network has seen a reinforcement that made its market share gain about $10 bln in the following week to reach about $70 bln of the entire $134 bln cryptomarket.

Most bitcoin exchanges in China including OKCoin, Huobi and BTCChina, allocate BCH to users and list the BCH/BTC trading pair on their trading platforms thus bringing the cloned version to many users – it is estimated that China dominates about 40% of its trading market. The easy access granted to users, going by today’s market scene, has shown that the loud minority that has sought to co-opt BTC has been put aside and it has worked out well for the entire ecosystem.

While Blockstream’s Samson Mow notes that BCH chain may survive with its value likely dipping below $100 as its current price of about $300 is artificially inflated due to many exchanges refusing to accept deposits, the August 1 split almost coincides with other eventualities that have seen BTC price rise to and consolidated at over $4000 and even indicate a growing trend.

The rise in BTC’s demand in China, Japan, South Korea and India has collectively resulted in BTC market capitalization seeing a daily transaction volume of over $1 bln since August 1 and in some instances over $2 bln according to Coinmarketcap – it even crossed over $3 bln on Sunday August 13.

BTC’s ability to maintain its network effect and market value made it handy as tension rises in the South China Sea in which the Chinese have been responding to what they described as the U.S. Navy’s “provocation” that will “compel China to take measures to further raise its capacity to defend national territory”.

Aside the territorial dispute in the South China Sea, there is also the tension between South Korea and North Korea over the deployment of a U.S.- supplied missile defence system.

The prospect of war will undermine the demand for regional currencies especially those mostly used by the countries involved: in this case yuan, yen, won and the US dollar. This is because of the market instability that could arise in such a situation. Hence, it could be a reason why there has been an increased flow into Bitcoin which is neither controlled by a government nor affected by the effect of global uncertainty on a particular national currency. The digital currency fits as a hedge when there is a mistrust of national currencies and the likely sell-off of store of value assets such as gold which is tied to the US dollar.

Between August 1 and today, Bitcoin price has risen by more than $1400 (about 50% increase). As the tense situation remains unchanged among these countries and BTC price continues to rise as it has been in the last few days, coupled with the expected activation of the Segregated Witness solution on the Bitcoin network in some days, the remaining half of August may see the jolly ride continue with the market price seeing a $5000 BTC by August 30. A correction may be lurking around the corner though.

Olusegun Ogundeji is an author and journalist from Africa. He writes mainly on technology-related issues including Bitcoin/Blockchain - usually from an end user perspective.

COMMENTS(16)

1 year agohl5460

Rising Demand in China, Other Asian Countries May Push Bitcoin to $5000 by Aug. 30There are about 15 more days left in the month of August 2017 and Bitcoin price seems to continue recovering from the stunted growth it has seen since the scaling issue heated up earlier this year.After the split of Bitcoin Cash BCH and the issue of the uncertainty  and its debate traced back to 2010  surrounding what is to come if it happens has been put to rest, the legacy Bitcoin BTC network has seen a reinforcement that made its market share gain about $10 bln in the following week to reach about $70 bln of the entire $134 bln cryptomarket.http://news.8btc.com/rising-demand-in-china-other-asian-countries-may-push-bitcoin-to-5000-by-aug-30

One of the many things I see right now with Bitcoin (and maybe even with other coins) is the fact that it is really Asia that is making a big wave here…especially with its surging demand which in turn pushed the value of Bitcoin to new heights. With big countries and big markets like Japan, China, India and possibly the ASEAN group of countries too, I am sure that the big bulk of Bitcoin’s future lies with these people. Many of the Bitcoin miners are also in Asia due to its lower electricity rates compared to developed countries. No question that the future is really full of positive news for Bitcoin in Asia. I am part of Asia and I am proud to be part of the Bitcoin community here.

Asian countries seems always lead bitcoin global trading and even bitcoin mining, especially in Japan and China.Govs regulations has a big role to make it happen, which Japan stated bitcoin as legal payment and the last PBOC investigation on 3 biggest exchanges that ends after 3 months but bitcoin still could survive in there and continue to grow.Another factor is taxes, whenever govs wants their share from bitcoiners, there are several problems will occur to make it happen and strict regulations about it makes people reluctant or aware with consequences before decide to buy bitcoin.

$5000 is not much of a special achievement anymore — from current levels it ‘only’ requires a 16% increase to reach that level. The only thing worthy of pointing at is the massive growth that we have experienced since the first of January. Asia is definitely a big factor, but I personally find the looming SegWit activation to play an even bigger role. I seriously believe that because of that, we will experience a decent sized correction afterwards. Currently, we are exactly 7 days away from activation, and if we take into consideration that the price mostly increases in advance of the actual happening, I even wouldn’t be surprised to see the price go down before activation.

Quote from: iamTom123 on August 16, 2017, 01:35:45 PM
One of the many things I see right now with Bitcoin (and maybe even with other coins) is the fact that it is really Asia that is making a big wave here…especially with its surging demand which in turn pushed the value of Bitcoin to new heights. With big countries and big markets like Japan, China, India and possibly the ASEAN group of countries too, I am sure that the big bulk of Bitcoin’s future lies with these people. Many of the Bitcoin miners are also in Asia due to its lower electricity rates compared to developed countries. No question that the future is really full of positive news for Bitcoin in Asia. I am part of Asia and I am proud to be part of the Bitcoin community here.

Quote from: richardsNY on August 16, 2017, 10:57:51 PM
$5000 is not much of a special achievement anymore — from current levels it ‘only’ requires a 16% increase to reach that level. The only thing worthy of pointing at is the massive growth that we have experienced since the first of January. Asia is definitely a big factor, but I personally find the looming SegWit activation to play an even bigger role. I seriously believe that because of that, we will experience a decent sized correction afterwards. Currently, we are exactly 7 days away from activation, and if we take into consideration that the price mostly increases in advance of the actual happening, I even wouldn’t be surprised to see the price go down before activation.

A 16% increase on top of a 100% increase in the last 3 weeks? The price movements of Bitcoin are definitely not memory less. It might go above $5000 this month, but it won’t be easy.

Quote from: richardsNY on August 16, 2017, 10:57:51 PM
if we take into consideration that the price mostly increases in advance of the actual happening, I even wouldn’t be surprised to see the price go down before activation.

If we look at one of the more recent major events, the block halving, the price indeed happened to increase in advance of the actual day where the block halving kicked in. People were even disappointed that the price didn’t increase anymore from that point, because that’s what they were assuming. In that regard, I am quite on the same side when it comes to there being a correction somewhere before or shortly after the activation. I must point out that the correction will be of short term, where not long (perhaps a few weeks to a month at most) after that, the price will start to increase beyond the previously reached ATH. Bulls are here to stay.

Quote from: richardsNY on August 16, 2017, 10:57:51 PM
if we take into consideration that the price mostly increases in advance of the actual happening, I even wouldn’t be surprised to see the price go down before activation.

If we look at one of the more recent major events, the block halving, the price indeed happened to increase in advance of the actual day where the block halving kicked in. People were even disappointed that the price didn’t increase anymore from that point, because that’s what they were assuming. In that regard, I am quite on the same side when it comes to there being a correction somewhere before or shortly after the activation. I must point out that the correction will be of short term, where not long (perhaps a few weeks to a month at most) after that, the price will start to increase beyond the previously reached ATH. Bulls are here to stay.

It seemed to me that the rise in the price of bitcoin began not because of demand, but after the bitcoin community survived the chain split. Before this event, there was tension in the society. I’m sure that bitcoin will become more expensive without adjustment and by the end of the year we will see 8,000 dollars

Cryptocurrency market has always been hot in Asia. In many Asian countries like South Korea, China, Japan and India Bitcoin was being sold at premium. Asia is the biggest market to cryptocurrency because of huge population it holds and is the main continent to drive the price too. Demand is still growing in Asia and would take the price to $5000 easily.

Quote from: iram1011 on August 18, 2017, 03:35:32 PM
Cryptocurrency market has always been hot in Asia. In many Asian countries like South Korea, China, Japan and India Bitcoin was being sold at premium. Asia is the biggest market to cryptocurrency because of huge population it holds and is the main continent to drive the price too. Demand is still growing in Asia and would take the price to $5000 easily.

Not only a large population counts, but the overall development of the country.And I agree, bitcoin is more popular now in Asia than on another continent. But I think that soon this coin will become known on the whole planet

Quote from: richardsNY on August 16, 2017, 10:57:51 PM
$5000 is not much of a special achievement anymore — from current levels it ‘only’ requires a 16% increase to reach that level. The only thing worthy of pointing at is the massive growth that we have experienced since the first of January. Asia is definitely a big factor, but I personally find the looming SegWit activation to play an even bigger role. I seriously believe that because of that, we will experience a decent sized correction afterwards. Currently, we are exactly 7 days away from activation, and if we take into consideration that the price mostly increases in advance of the actual happening, I even wouldn’t be surprised to see the price go down before activation.
Bitcoin is in the red color for days already after this article has been published. I really doubt that bitcoin will reach 5000$ during this 10 days, which are remain to the 30th of August the author is talking about. but I think Bitcoin has all perspectives for such growth and the new record. I also think nobody is going to be surprised to see such sum in sooner time. How to say, everything is going to that. but here is the question – what is going to do next? will it be the top of bitcoin’s babble or the best strategy would be to wait for 10 000$ price?

the more I think about it and look at the charts,10.000$ by the end of the year doesn’t sound to be as far fetched as it seemed only a month agoeven the introduction of BCC and all the uncertainty surrounding Segwit2x could not halt the growthcorrections to 3700-3600$ and the subsequent recovery to 4200$ show that there is a potential to breakthe 5000$ mark if not by the end of the August,but in September for sure and then November will give many answers as to where the price will be,but I do not it expect it to be lower than 6-7k then

Quote from: veleten on August 23, 2017, 02:31:07 PM
the more I think about it and look at the charts,10.000$ by the end of the year doesn’t sound to be as far fetched as it seemed only a month agoeven the introduction of BCC and all the uncertainty surrounding Segwit2x could not halt the growthcorrections to 3700-3600$ and the subsequent recovery to 4200$ show that there is a potential to breakthe 5000$ mark if not by the end of the August,but in September for sure and then November will give many answers as to where the price will be,but I do not it expect it to be lower than 6-7k then

I would be impressed when bitcoins sells above it’s previous record price and if BCC are also selling at record prices. This willindicate that there are “new” money coming into the system and not just “old” money being circulated between Alt coins. I think a lot of people are selling their BCC to buy other coins. If everyone start to gradually dump their free BCC and buy some bitcoins, we might see $5000+ in this month.